LGIM launches first listed infrastructure UK UCITS index fund
Legal and General Investment Management (LGIM) has today announced the launch of the Legal and General Global Infrastructure Index Fund (‘the Fund’), a UCITS-compliant Unit Trust.
The Fund provides an opportunity to invest in global listed infrastructure in a cost-effective and liquid index solution, and aims to offer both income and capital growth to investors by tracking the performance of the FTSE Global Core Infrastructure Index.
The Legal and General Global Infrastructure Index Fund comprises over 200 index constituent holdings from more than 30 countries, providing a broad exposure to listed companies that own, operate, manage or maintain essential infrastructure across a range of sectors, including utilities, industrials and oil and gas.
Honor Solomon, head of retail, EMEA, at LGIM, commented: “Infrastructure assets such as roads, railways and pipelines are essential for our economies to function. An attractive combination of capital growth and a stable income stream, in many cases linked to inflation, has meant listed infrastructure has become increasingly popular with investors.
“This fund builds on our commitment to provide high-quality exposure across a broad range of asset classes which advisers and investors can use as building blocks for constructing portfolios. Given its modest correlation with traditional asset classes such as equities, credit, and government bonds, listed infrastructure can also be a useful diversifier.”
Justin Onuekwusi, multi-asset fund manager at LGIM continued: “Listed infrastructure is an important asset class in a multi-asset portfolio. Over the long-term, it has delivered attractive risk-adjusted returns, which complements a diversified portfolio. Together with its attractive yield and defensive characteristics, the asset class is a mainstay holding across our £45bn multi-asset fund range.”